Bitcoin has lost about a quarter of its worth over the last month. Most recent figures show that the combined market capitalization of Bitcoin, Ethereum, Ripple, and Solana remains within (though) close to the $2 trillion mark. The combined market cap of the leading virtual assets had registered nearly $3 trillion in value as at March 2024.
However, the most dreadful news about Bitcoin price involves predictions that the asset is heading below $50k in Q3, as whales demonstrate a loss of vigor across the board. This review explores analysis and predictions along these lines, as investors prepare for an unpromising third quarter of 2024.
Top Factors Supporting Foreboding Short-Term Future for BTC
Bitcoin's meltdown in price springs from major investors selling large amounts of Bitcoin in recent times. Mt Gox, a renowned crypto exchange, moved a surplus of 47,000 BTC (valued at over $2 billion) towards offering a debt of $9 billion to clients.
Similarly, last Friday, Mt Gox's rehabilitation trustee reportedly made BTC and BCH repayments to some rehabilitation creditors via some of its specific crypto exchanges. News about the activity became public after the exchange published a letter surrounding the subject on their website. The letter is now unavailable on the website for inexplicable reasons.
Affirming the activities, crypto analysts with Arkham Intelligence claim they've seen Mt. Gox moved nearly 50,000 BTC (worth $2.7 billion) to a different wallet recently. The singular act reportedly dipped Bitcoin’s price below $55,000 instantly following the sale, according to reports.
According to Neil Roarty, an analyst at investment company Stocklytics, Bitcoin price is possibly headed for a negative downturn if an extra 200,000 BTC hits the market within a short time. Such movements could make supply overcome demand, making the price of BTC dip even further.
But Mt. Gox's sale hasn't been the only deterrent driving panic among investors in the industry. Germany's government has sold over 1,300 BTC to exchanges, signaling more negative pressure on the price. The government began a BTC-selling rampage in January and hasn't stopped in its tracks. Meanwhile, its recent sale of over $900 million worth of Bitcoin is perhaps the most widespread threat to investor confidence in the asset. Meanwhile, the US government has also been moving millions of BTCs to undisclosed addresses in recent times, according to Arkham intelligence data.
Experts predict these large selloffs will likely dip Bitcoin's prices towards $50k, rather than further above it. Meanwhile, Jerome Powell, Federal Reserve chair, warned of a critical period for crypto investors, especially concerning BTC.
In a Nutshell
The pressure to sell BTC holdings from Mt. Gox users, alongside leading institutional owners, will determine the direction of Bitcoin price in the coming days. Feds predict debts are becoming unsustainable, affirming other predictions of Bitcoin heading below $50k in the immediate future. However, the already significant selling wave in the industry forebodes a dreary Q3 for BTC price in 2024.
Resources:
- https://www.forbes.com/sites/digital-assets/2024/07/04/fed-chair-powell-issues-critical-warning-sparking-sudden-60000-bitcoin-price-and-crypto-crash/
- https://www.cnbc.com/2024/07/05/mt-gox-begins-repaying-bitcoin-to-creditors-a-decade-on-from-collapse.html
- https://cryptonews.com/news/germany-transfers-another-1300-btc-to-exchanges-as-market-dips.htm